Qualcomm (QCOM) is scheduled to announce its results for the third quarter of Fiscal 2025 after the market closes on Wednesday, July 30. Despite concerns about the upcoming loss of Apple (AAPL) as a major customer, pressures in the smartphone end market, and significant China exposure, several analysts are optimistic about Qualcomm as it is expanding beyond smartphone chipsets to lucrative areas like IoT (Internet-of-Things), automotive, and edge AI organically and via strategic acquisitions. Wall Street expects Qualcomm to report adjusted earnings per share (EPS) of $2.71, reflecting a 16.3% year-over-year growth.
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Revenue is estimated to increase by 10.1% to $10.34 billion compared to the prior-year quarter.
Analysts’ Views Ahead of Qualcomm’s Q3 Earnings
Heading into the fiscal Q3 earnings, Bernstein analyst Stacy Rasgon reiterated a Buy rating on QCOM stock with a price target of $185. The 5-star analyst stated that QCOM remains “heavily out of favor amid general distaste of smartphones,” tariff pressures, muted expectations over the near-term due to Apple’s use of its in-house modem chips, and a lack of catalysts currently.
Nonetheless, Rasgon remains bullish as he sees value in Qualcomm, supported by a strong product portfolio. The analyst finds QCOM stock’s valuation attractive, as he expects the company to grow earnings by double-digits. “Catalyst or not, it seems a worthwhile name to keep on your back burner at least,” concluded Rasgon.
Meanwhile, KeyBanc expects strong earnings momentum across the semiconductor sector this quarter, with AI-related demand and product ramps driving upside. For Qualcomm, KeyBanc expects upside in the June quarter but warns that the second half could be under pressure due to the ramp of Apple’s internal 5G modem and softening Android demand in China.
AI Analyst Is Bullish on Qualcomm Stock Ahead of Q3 Print
TipRanks’ AI stock analyst has assigned an Outperform rating to Qualcomm stock with a price target of $185, indicating 14.9% upside potential. According to TipRanks’ AI analysis, the bullish stance on QCOM stock is based on solid financial performance and strategic initiatives, especially in the automotive and IoT sectors, attractive valuation, and recent acquisitions that further bolster its growth prospects. However, the AI analyst cautioned about the stock’s overbought technical signals and global trade uncertainties.
Here’s What Options Traders Anticipate Ahead of QCOM’s Q3 Earnings
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting about a 6.45% move in either direction in Qualcomm stock in reaction to Q3 results.
Is QCOM a Good Stock to Buy Now?
Currently, Wall Street has a Moderate Buy consensus rating on Qualcomm stock based on eight Buys, nine Holds, and one Sell recommendation. The average QCOM stock price target of $179.50 indicates 11.5% upside potential from current levels. QCOM stock has risen about 5% year-to-date.
